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77% of NTE Businesses say Late Night Levy Should be Abolished says Survey

Following the launch of a Home Office Consultation into late night levy charges aimed at increasing its use by local authorities.

Over three quarters (77%) of businesses in the night-time economy have called for the late night levy to be abolished . The results follow a consultation by the Home Office into the levy aimed at increasing its usage among local authorities.

Many across the sector, the survey says are seeing this as a “Stealth Tax ” to support local Policing and Local Authority budgets across the UK, but more importantly, within the current climate these additional costs are unaffordable and will further erode the limited cash flow these businesses are surviving on.

NTIA Flash Poll : 306 Respondents (LNL – Late Night Levy)
• 72.2% of Respondents with a LNL area feel it does not meet its objective
• 84.4% of Respondents who do not currently pay LNL felt that a Late Night Levy would not benefit the area they operate within.
• 81% of Respondents felt that the LNL would not be affordable in the current operating climate.
• 77% of Respondents felt that The LNL should be abolished

Only nine local authorities, including Newcastle, Southampton and London boroughs Camden and Tower Hamlets, charged a late-night levy in 2022. Several councils, such as Nottingham and Cheltenham, have scrapped the tax in support of the night time economy and hospitality sectors.

Michael Kill CEO NTIA says:
“It is absurd that the Government is even considering consulting on the expansion of the current late night levy scheme. It’s atrociously timed, in the middle of a cost inflation crisis, where the sector is perilously being pushed closer and closer to the edge.”

“The House of Lords review on licensing last year was very clear that the late night levy had not met its objectives, wholeheartedly backed by the industry, suggesting that it is unaffordable and represents no benefit to businesses on the ground.”

NTIA Flash Poll: 306 Respondents:
What type of business do you operate?
• 45.9% Nightclub / Venue / Event Space
• 36.1% Pub/Bar/Restaurant
• 4.9% Hybrid Space
• 4.9% Promoter / Event Organiser
• 4.9% Supply Chain
• 3.3% Other

Where is your business located?
• 77.8% England
• 19% Scotland
• 3.2% Wales

Is your business currently subject to a Late Night Levy?
• 71.4% No / 28.6% Yes

Businesses Operating within LNL Areas:
Do you believe that the Late Night Levy meets its objectives for the business area you operate within?
• 72.2% No / 27.8% Yes

Businesses Not Operating with LNL Area
Do you believe a Late Night Levy would benefit the area which you operate within?
• 84.4% No / 15.6% Yes

Both LNL & Non LNL Businesses
Under the current operational conditions, is a Late Night Levy affordable to your business within your area?
81% No / 19% Yes

What do you think should happen to the Late Night Levy?
• 77% Believe the Late Night Levy Should be abolished
• 9.8% Left to Local Authorities to decide on implementation
• 9.8% Rolled out nationally